Determining Your Car’s Value for a Title Loan

June 29, 2011 by  Filed under: Loans 

Online car title loans provide fast cash to people who find themselves in a financial bind. Since the amount of money borrowers can receive from these loans is based in large part on the value of the vehicle being used as collateral, it’s important to understand exactly how lenders arrive at the figure. When you know how your vehicle’s value is determined, you will be in a better position to evaluate the fairness of the loan offers you receive.

Before applying for a loan online, take some time to inspect your vehicle and appraise its condition in terms of the following criteria. Remember to be honest in your assessment so you will have more realistic expectations regarding the loan amount you might qualify for.

  • Appearance and mechanical condition. In order to get a favorable appraisal, your vehicle should appear clean, rust-free, and well cared for. In addition, all title loans specify that your vehicle must be in drivable condition, so you should get any major mechanical problems taken care of before the inspection.
  • Year, make, and model. Cars that are more than 10 years old usually do not qualify for title loans, which means you’re out of luck if your vehicle was manufactured more than a decade ago. The make and model are also important factors in determining your car’s worth as collateral. A model with a high safety rating and excellent resale value will be viewed more positively than a model with known problems and issues.
  • Mileage. Having a vehicle with a low to average odometer reading-typically in the range of 12,000 to 15,000 miles per year-could increase your chances of being approved for online car title loans.
  • Upgrades and options. A fully loaded vehicle with factory installed or after-market options will be worth more as collateral for and allow you to borrow more money than an entry-level model with minimal upgrades. Be sure to list your name-brand sound system, DVD player, and other options on your application form.
  • Location of the vehicle. Some cars are more suited to driving in certain climates, terrains, and conditions than others. For example, a four-wheel drive pickup truck would be more valuable in a rural area than in midtown Manhattan, and would therefore likely command better loan offers outside the city.

Along with a visual inspection, lenders might also consult third-party resources such as Kelley Blue Book, Edmunds, and National Auto Dealers Association (NADA) guides when making their appraisal.

Although determining a vehicle’s value for title loans can be a bit subjective, reputable lenders offer transparency during the process and will tell you how or why they arrived at a certain dollar amount. Now that you know how to get a rough estimate of your car’s worth, you’ll know which online car title loans to accept and which to reject.

Stephanie Elman writes for Turbo Title Loan, where borrowers go for low interest loans. Title loans use the equity in your vehicle to get low rates and fast approval. Online car title loans are a secure way to get a loan today.

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